1. Ambuja Cement 1 Ambuja Cement November 2005

2. Ambuja Cement 2 Indian Economy  On a Consistent growth path  Impetus on Service Sector  Changing Demography - A Growth Driver  Moved from being an Agrarian Economy to Services & Manufacturing Economy

3. Ambuja Cement 3 GDP Constituent 1997 - 98 2005 - 06 Agriculture 40 22 Manufacturing 35 27 Services 25 51 (%) Agrarian to a Service Economy

4. Ambuja Cement 4 Infrastructure & Housing New Drivers of Economic Growth

5. Ambuja Cement 5 Cement - Proxy to Growth

6. Ambuja Cement 6 Future Cement Scenario  Indian economy expected to grow at - 7 to 8%  Infrastructure development at an inflection point  Housing to be the main driver of cement growth  Cement Growth expected to be over 9%  After a long gap demand would exceed supply

7. Ambuja Cement 7 Cement Demand (Apr - Nov) Mn. Tonnes Growth (%) 2005 - 06* 89.7 10 2004 - 05 81.8 8 * Estimated for November 2005

8. Ambuja Cement 8 Expected Cement Demand 2005-06 2006-07 2007-08 Base Domestic Demand 123 133 143 Growth - 8% 10 10 - - 9% - - 13 Expected Domestic Demand 133 143 156 Exports 4 4 4 Expected Total Cement Demand 137 147 160 Mn. Tonnes

9. Ambuja Cement 9 Cement Production Capability 2005-06 2006-07 2007-08 Base Clinker Production 109 113 118 Increased Production due to improvements/Expansions 45 6 113 118 124 Clinker Export 6 66 Clinker for Cement Grinding 107 112 118 Blending Ratio 1.28 1.28 1.28 Cement Production 137 143 151 Mn. Tonnes

10. Ambuja Cement 10 Demand set to outstrip Supply

11. Ambuja Cement 11 Result A Structural change in Pricing Scenario….

12. Ambuja Cement 12 …. As  No Major Cement Capacity expected in near future  Reasonably Consolidated Industry

13. Ambuja Cement 13 1995 Top 5 Groups 26% Others 74% 2005 Top 5 Groups 65% Others 35% Fragmentation To Consolidation

14. Ambuja Cement 14 Average Cement Prices - Domestic - US $% Change 2005 - 06 45 13 2004 - 05 40 8 US $/ Per Tonne Cement Prices Net of Duties, Taxes and Freight

15. Ambuja Cement 15 - International - 2005 - 06 2004 - 05 Cement 45 37 Clinker 35 28 (FOB) - Free on Board US $/ Per Tonne (FOB)

16. Ambuja Cement 16 Sea terminals Cement factories HP Gujarat Rajasthan Maharashtra Punjab Ambuja Cement Western India 8.0 Northern India 6.0 Total Capacity 14.0 Mn. tonnes 1986 - 0.7 Mn. Tonnes Today - 14 Mn. Tonnes Predominant Player in West & North India

17. Ambuja Cement 17 Growth With A Sustainable Business Model

18. Ambuja Cement 18 Our Business Model  Owned Infrastructure  Logistic Management  Premium Brand - Only selling in Retail Markets  Environment Friendly operations  Social Corporate Citizen  Low Cost Cement Producer

19. Ambuja Cement 19  200 MW of Captive Power Plants  100% captive power - Reliable & cheap generation  Large port handling Export of Cement & Import of Coal  3 Cement receiving terminals  7 Owned Ships for transporting Cement by Sea  35% Cement transport by sea - Cheapest Mode  Largest Exporter of Cement - 15% of Production Infrastructure & Logistic Management

20. Ambuja Cement 20 Premium Brand India - A bagged market Individual home builder - Key driver of demand Our focus :  Best quality cement  Good packaging  Strong distribution network  Customer service Ambuja Cement - Most preferred brand - Fetching higher realisation

21. Ambuja Cement 21  Use of surface miners - Blast free mining  Restoration of mines - green spots & water reservoirs  Use of bio-gas, agro waste as alternate fuels  Rose Garden & Cement Plants - Co-exist  Many International Awards in Environment Management  Global Standards for Environmental Measures  ISO 14001 for Environment Management System Environment Friendly Operations

22. Ambuja Cement 22  Raising Environment Awareness  Building up of check dams, salinity ingress checks  Water Harvesting & Ecology Pits - Visit of Siberian Cranes  Programs for rural healthcare and women development  Asian CSR Awards 2005 for Environmental Excellence among 94 companies participating from 16 countries Corporate Social Responsibility

23. Ambuja Cement 23 Direct Cost FY 2005 Power 202 Fuel 298 Raw material 172 Consumables 49 Direct cost 721 US $ 16.0 Rs./ tonne USD/INR = Rs. 45

24. Ambuja Cement 24 F.Y Operating Margin (%) 2005 30 2004 29 2003 29 Highest Operating Margins in the Indian Cement Industry Operating Margin

25. Ambuja Cement 25 Gujarat Ambuja Cements Limited (Consolidated Income Statement) FY2005 FY 2004 Growth (%) Sales 30855 24150 28 Operating Profit 9278 7098 31 Interest 902 900 - Depreciation 2195 2082 6 Profit Before Tax 6181 4116 50 Prior Period Adjs (credit) - 425 - Tax 831 688 20 Profit After Tax 5350 3853 39 Minority Interest 169 229 (26) Net Profit 5181 3624 43 Operating Margin 30 % 29 % -- Rs. Mn.

26. Ambuja Cement 26 Gujarat Ambuja Cements Limited (Consolidated Balance Sheet) FY2005FY2004 Sources of Funds Shareholders’ Funds 24873 17314 Minority Interest 79 6375 Deferred Tax 3811 3209 Net Debt 8447 11845 Total 37210 38743 Application of Funds Gross Fixed Assets 39210 44434 Less: Depreciation 14792 16005 Net Fixed Assets 24418 28429 Investments 10835 9637 Net Current Assets 1957 677 Total 37210 38743 Rs. Mn.

27. Ambuja Cement 27 Ratios FY 2005 FY 2004 Interest Cover 9.4 7.5 Operating Margin 30 % 29 % Net Debt / EBIDTA 1.1 2.2 Net Debt / Networth 0.37 0.61 ROCE 17 % 12 % RONW 21 % 18 %

28. Ambuja Cement 28 Our Score Card (1987 - 2005) Parameters CAGR (%) Capacity 18 Sales 29 Net Profit 36 Networth 30 Return to Shareholders 29 Wtd. Avg. EBIDTA Margin 33

29. Ambuja Cement 29 Our First Quarter Financials (June - Sept 2005) 1Q 2006 1Q 2005 Sales 6774 7066 Operating Profit 1714 1894 Other Income 8 234 Interest 220 229 Depreciation 495 607 Share Profit of Associates 339 - Profit Before Tax 1346 1292 Tax 265 204 Minority Interest - 79 Profit After Tax 1081 1009 Rs. Mn. The Results are not comparable as ACEL during the current quarter has been considered as an associate as compared to a subsidiary company in the previous quarter.

30. Ambuja Cement 30 Our Shareholders Management 24% Domestic Pension & Mutual Funds 18% FII's (Incl. GDR) 41% Others 17% Current Market Capitalization - Over US$ 2 Bln. One of the most traded shares in India

31. Ambuja Cement 31 Payout Ratio Year Equity PAT Dividend Payout Capital (%) Ratio (%) 2005 27038 46829 90 46 * 2004 17940 33679 80 47 2003 15530 22209 70 55 Rs. Mln. A Policy of 40 - 60% Payout * On Expanded Capital

32. Ambuja Cement 32 Partnership with Holcim

33. Ambuja Cement 33 Structure Due to this Structure GACL’s effective shareholding in ACC goes up to 11.5% from 8.3 % without any fresh investments by GACL. ACEL 94.6% ACC 13.8% ACIL GACL AIG/GIC 60% 40% ACEL 97.0% ACC 34.7% ACIL GACLHOLCIM 33% 67% BeforeCurrent

34. Ambuja Cement 34 Salient Features of the Partnership  Holcim Investments in India through ACIL only  Access to Holcim’s best practices in areas such as waste heat recovery, use of alternative fuels, human resources and Information technology  Opening of new cement trading opportunities in Middle East and Indian Ocean

35. Ambuja Cement 35 Ambuja Growth Plans  Plan to increase capacity by 3 to 4 mn. tonnes in next 2 - 3 years by way of acquisition, upgradation & brown field expansion.  Growth to be funded from free cash flows

36. Ambuja Cement 36 Thank You